2 Common Reasons Why People Have Bad Credit Scores

A good score can help you to get for example cheaper auto insurance. Anyways, to get good deals, you should have a score above 700. However, if you want the best of the best, the best deals usually go to people with scores above 750. Credit scores reward responsible behavior. If you pay your bills on time, you will be rewarded with a good score. That said, responsible people do not however always have good credit scores. Take a look at the two mistakes here that people make, costing them valuable points and money.

People normally work hard to pay back all the money that they borrowed. But when it comes to your credit score, keeping active accounts is actually more important than paying a collection item.

This is quite tricky – You only use one credit card. By doing that, it can actually harm your credit score, by driving up an important calculation called utilization. Utilization is the percentage of your available credit that is being used. Utilization is calculated for individual credit cards and also across all of your credit cards. Read more